SEC Amends Rules to Issue More Subpoenas

HedgeCo.net (West Palm Beach) – Off-shore hedge fund law firm, Sadis & Goldberg LLP, sent out a letter to their clients announcing that the Securities and Exchange Commission (SEC) appears determined to issue more subpoenas and give people more incentives to cooperate with investigations as it works to enhance its oversight of the financial markets.

The letter, obtained by HedgeCo, explains, ”Don’t be surprised if you receive a subpoena or are contacted by the SEC.” Daniel G. Viola, spokesperson for Sadis & Goldberg, said, ”The SEC has significantly increased its enforcement efforts since the recent discovery of certain high profile Ponzi schemes.”

Effective August 11, 2009, the SEC has also made it easier for its staff attorneys to issue subpoenas. Thus, the SEC staff attorneys will no longer have to obtain formal approvals to issue subpoenas; instead, they will simply need approval from their senior supervisor.

”If you receive an inquiry letter or subpoena from the SEC, remain calm, ”Viola said, ”This is not uncommon given the current regulatory climate. Above all, do not respond without first contacting legal counsel.”

The The SEC generally has broad powers to conduct investigations of potential violations of the federal securities laws and often works with the Department of Justice in connection with joint proceedings, often known as ”parallel proceedings.”

The law firms Regulatory Practice Group consists of former SEC personnel and litigators with experience regarding civil and criminal proceedings.